ITO, New Delhi V. M/s. Neural Developers (P) Ltd., New Delhi

ITA 5917/DEL/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1901 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 18-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

1 ITA NO. 5917/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. NO. 5917/DEL/2016 (A.Y 2011-12) ITO, WARD-18(1), NEW DELHI. (APPELLANT) VS M/S. NEURAL DEVELOPERS (P) LTD., (EARLIER KNOWN AS M/S. CITIXSYS SOFTWARE INDIA (P) LTD.), S-317, PANCHSHEEL PARK, NEW DELHI 110 017. (AABCN 2686 H) ( RESPONDENT) APPELLANT BY MS. RAKHI VIMAL, SR. D.R. RESPONDENT BY --NONE-- ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS]-2, NEW DELHI DATED 28.07.2016 FOR ASSESSMENT YEAR 2011-12. 2. AT THE OUTSET, IT WAS BROUGHT TO OUR NOTICE THAT THE TAX EFFECT INVOLVED IN THIS APPEAL BEING LESS THAN RS. 50 LACS, SQUARELY FALLS WITHIN THE AMBIT OF CIRCULAR NO. 17/2019 DATED 08.08.2019 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES PRESCRIBING THE TAX EFFECT FOR PREFERRING APPEALS BEFORE TRIBUNAL BY THE REVENUE AND SUBSEQUENT CLARIFICATION ISSUED BY CBDT ON 20 TH AUGUST, 2019. 3. AFTER PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE AMOUNT DISPUTED BEFORE US IS BELOW THE TAX EFFECT LIMIT PRESCRIBED BY CBDT VIDE DATE OF HEARING 10.12.2019 DATE OF PRONOUNCEMENT 10.12.2019 2 ITA NO. 5917/DEL/2016 CIRCULAR NO. 17/2019 DATED 08.08.2019 FOR PREFERRING APPEALS BEFORE TRIBUNAL BY THE REVENUE. ON PERUSAL OF THE CIRCULAR NO. 17/2019 DATED 08.08.2019 AND THE MATERIALS AVAILABLE ON RECORD, LD. SR. DR COULD NOT POINT OUT AS TO HOW AND WHY SUCH A CIRCULAR IS NOT APPLICABLE TO THE FACTS OF THE CASE. WE FIND THAT THE SUBSEQUENT CLARIFICATION DATED 20.08.2019 MAKES IT VERY CLEAR THAT THE REVISED MONETARY LIMITS SHALL APPLY RETROSPECTIVELY TO PENDING APPEALS ALSO. THE CIRCULAR IS BINDING ON THE TAX AUTHORITIES. HENCE, WE HOLD THAT THE APPEAL OF THE REVENUE DESERVE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT VIDE CIRCULAR NO. 17/2019 DATED 08.08.2019 AND SUBSEQUENT CLARIFICATION ON 20.08.2019. ACCORDINGLY, ON ACCOUNT OF LOW TAX EFFECT CASE, WE DISMISSED THIS APPEAL OF REVENUE IN LIMINE, WITHOUT GOING INTO THE MERITS OF THE CASE. 4. IN RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH DAY OF DECEMBER, 2019 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10/12/2019 PRITI YADAV, SR. PS * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI